Evening Update: PepsiCo Expects Earnings Boost From Frito-Lay Sales
Tara Murphy
03/29/00 - 07:57 PM EST
PepsiCo(PEP Quote) said it sees its first-quarter earnings in line with the 13-analyst estimate of 28 cents a share. The company attributed the solid profit to strength in its Frito-Lay snack food division and its juice business, but added that high prices were problematic for its North American Pepsi-Cola unit. Chairman and CEO Roger Enrico said he also expects fiscal 2000 earnings to meet the 16-analyst estimate of $1.38 a share. Enrico said the company's share repurchasing program is being exercised faster than expected.
Seagate Technology (SEG Quote), the leading maker of computer disk drives, said it would be acquired by an investor group,
Silver Lake Partners, that includes its management in a complex deal that would sell its 33% stake in
Veritas Software (VRTS Quote) back to that company.
The Veritas stake accounts for most of Seagate's stock market value. The companies valued the stock and cash deal at $20.2 billion.
For more on Seagate's acquisition, check out a
story written this evening by
TheStreet.com-NYTimes.com joint newsroom.
Separately,
Standard & Poor's said that Veritas would replace
Pep Boys (PBY Quote) (but what'll happen to Manny, Mo and Jack?) in the
S&P 500. S&P added that
Edwards Lifesciences(EW Quote) will fill Veritas' former spot in the
S&P MidCap 400 and Pep Boys would take over 911 services provider
Rural/Metro(RURL Quote) in the
S&P SmallCap 600.
| Major Indices | | INDEX | CHANGE | % | VALUE | YR TO DATE | | Dow |  
82.61 | +0.8% | 11,018.73 | -4.2% | | S&P 500 |
0.79 | +0.1% | 1508.52 | +2.7% | | Nasdaq | 
189.22 | -3.9% | 4644.67 | +14.1% | | Russell 2000 |
16.04 | +2.9% | 543 | +7.6% | | TSC Internet |
93.01 | -7.6% | 1124.08 | +2.6% | | NOTE | CHANGE | PRICE | YIELD | | 10-Year Treasury |
1/32 | 102 15/32 | 6.164% |
|
In other postclose news (earnings estimates from
First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified):
Mergers, acquisitions and joint ventures
Telco AAPT and America Online (AOL Quote) said they have entered a joint pact to run the AOL Australia unit. Both parties would hold a 50% interest in the venture, which would set up a Web portal using AOL wireless technologies to the domestic wireless consumer market. The financial terms of the deal not released. Earnings/revenue reports
Cabletron(CS Quote), a computer networking manufacturer, posted fourth-quarter pro forma earnings of 15 cents a share, a penny better than the 13-analyst estimate and up from the year-ago 2-cent profit. Chairman and CEO Piyush Patel said the Cabletron is ready to covert itself into a holding company and four separate units which would concentrate on Internet infrastructure. Cabletron said it would spin off these four companies to shareholders. 4Front(FFTI Quote), a information technology provider, reported fourth-quarter earnings of 11 cents a share, a penny better than the three-analyst estimate but down from the year-ago 16-cent profit. The company said it would assume a $15 million reorganization charge in the first half of fiscal 2001 to boost its e-business and consolidate operating expenses. Finish Line(FINL Quote), a sportswear retailer, reported fourth-quarter earnings of 26 cents a share, beating the six-analyst estimate of 20 cents a share but down from the year-ago 27-cent profit. Offerings and stock actions
Micron Technology(MU Quote) set a 2-for-1 stock split. For a look into this evening's after-hours trading action, please check out
TheStreet.com's The Night Watch.
